Updated Surplus Numbers

Updated Surplus Numbers
Updated Surplus Numbers: Actual surplus 2018 per audit was $85,163.
Boards 2011-2018 implemented policies and procedures with specific goals:
stabilize owner fees, achieve maintenance objectives and achieve annual budget surpluses.
Any surplus was retained by the association.
The board elected in fall 2018 decided to increase owner fees, even in view of a large potential surplus

Average fees prior to 2019

Average fees prior to 2019
Average fees per owner prior to 2019:
RED indicates the consequences had boards continued the fee policies prior to 2010,
BLUE indicates actual fees. These moderated when better policies and financial controls were put in place by boards

Better budgeting could have resulted in lower fees

Better budgeting could have resulted in lower fees
Better budgeting could have resulted in lower fees:
RED line = actual fees enacted by boards,
BLUE line = alternate, fees, ultimately lower with same association income lower had
boards used better financial controls and focused on long term fee stability

Wednesday, July 23, 2014

Lakecliffe Rebuilding Update


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Hold on to your hat, Mable, the construction crews are en route!
I'm not kidding. This post will provide details of the now imminent construction. Anyone who reads this blog is aware of the issues on the north section of Lakecliffe Blvd.  The problems were identified in 2008-9. The board was told in black and white in January 2010 about the seriousness of the situation and was given a timetable of failure "within 5 years." That was exactly 4-1/2 years ago. But that didn't fit the popular agenda.

So what did I mean when I said we faced "failure" of this street?  At the time, no one on the board asked me. They didn't want to know.

Some people wonder why I am frustrated. I'm using north Lakecliffe as my poster child. For 6 years I've observed various owners and boards argue "we don't need to do this." I've observed owners and boards argue "we don't need a reserve study." I've observed owners and board members argue "we can do this with an army of handy men." Need I go on? The problem I have is when things go wrong, then the same people run, or turn to others and say "how could this happen" and worse still, they will turn to me, or our manager, or a current board and say "it's your fault. You shouldn't have allowed this to happen" or "fix it NOW." One owner complained "I'm embarrassed by this street." It's interesting to note that some of the very people who argued against this type of action are now in the audience playing dumb and saying "how could this happen?" I'm willing to take responsibility for my actions, but I will not take responsibility for the actions of others.

Some problems can only be delayed for so long and then it becomes obvious to everyone.  In fact, some owners now come to HOA meetings and express dismay at the signs of early decay of other streets. Even a member of that former board noticed this. Of course, the question that has been posed to the current board is "What are you going to do about this?" The pieces have been put into place incrementally and the capstone is ready . Furthermore the board will know a lot more about the condition of all of the streets after the results of the engineering study have been completed. The board will also have a very good idea of the cost to deal with the other street problems. 

The problem of north Lakecliffe is finally to be decisively dealt with. No more bandaids, no more procrastinating and no more "pass the problem to future boards and the hat to future owners." After several years of warranty repairs, a board willing to take this on and forge a board agreement to get an engineering survey, take core samples and analysis, after many board conversations about how not only how to deal with this but how to pay for it, selection of a course of action, selection of an engineer and formal agreement about his role,  and the preparation of drawings and specifications. This has taken lots of board and management time to get to the point where this the street will finally be replaced.

Replaced, I will add, 6-8 years earlier than planned as of 2014. In 2009 when I flagged this as a significant problem, that was 12 years earlier than planned. (How serious was this? Streets are supposed to last 15-20 years with little maintenance.) That's what boards are supposed to budget for. We don't budget for street replacement (base and asphalt) every 10 years.

Owners who regularly attend HOA meeting know the details because all of this is discussed during open HOA meetings. Most don't attend. Some don't read the newsletters. [Sigh!]. Nevertheless that time has arrived and the time is NOW

Additional weather delays may yet occur. However it's "full steam ahead."

How Large a Project is This?
One half of the length of the major street in this HOA will be closed for part of the construction. This will inconvenience each and every resident. 56 units will be directly affected. Another 40 on Harrow Court will find there are times they cannot get into or out of the cul-de-sac via automobile. How will the various residents deal with this? We'll find out. We'll see just what the mettle is for this HOA.  

The Timetable
Weather - Any timetable will be determined by the weather. Nevertheless, I expect some of our owners to say "But you promised!"

Immediate - Signs will be posted and notices will be posted and letters mailed to each owner and tenant so all are informed. Several versions because depending upon where one lives in BLMH there will be different consequences. Material stored in parking areas will be moved to free up parking. Where will some of this material go? To the area the board recently agreed to build additional onsite storage. (Was this an accident, or is this part of the plan? Here's a hint; my life is not about living an accident.) Notices will be posted at each entrance in the construction area. Additional notices will be posted for the remaining residents. 

Next Week - Some driveways and one parking area will be closed while curbs are removed. New curbs will be poured and allowed to cure. Concrete samples will be taken for testing. While all this is going on parking and access to some driveways will be restricted. Driveways with new curbing will be closed. Sorry for the inconvenience. Storm drains (basins) will be cut away for inspection so any repairs can be made before the street is replaced. Better to do this now than to rip up a new street in a year or two or three, yes?

The Week Thereafter - A large section of Lakecliffe will be closed. That means no traffic in that portion and Harrow Court will be cut off. Asphalt will be removed and so will the base. "Proof Roll" witnessed by the engineer will determine how much base and sub-base is to be removed. After new stone is placed and rolled asphalting will begin. 

How Long Will I Be Inconvenienced?
The total time of the project once it begins and with no weather or other delays will be 7-10 working days (weekdays). 

Behind the Scenes
In addition to the visible work there has been a lot of "behind the scenes" work and preparation. JULIE was notified. Water mains will be marked by the association (not by JULIE; we own the mains because we are a PUD). Numerous meetings of the board, of the contractor, engineer, management and maintenance occurred. Courses of action were discussed. Plans were made and remade. Logistical issues were discussed not once, but many times. These discussions included the engineer, management, maintenance, myself and the entire board. Communications was discussed; who is to communicate what and to whom and when? The police department of the City of Wheaton has been advised that owners may park on Briarcliffe Blvd overnight if Lakecliffe is closed; however, it's up to each resident to notify the police department if they do so.  The post office has been notified. Etc., etc, etc.

How Will This Turn Out?
I expect some upset residents. I expect some won't read the notices or if they do, they will act contrary to them. I expect some automobiles may be towed. Some residents will be unhappy. 

I am supposed to be in San Antonio, TX for business while some of this is going on. However, I am inclined to delay that trip so I can be here to "do my duty as a fiduciary." However, taking a week of two of one's life to do this doesn't really make a lot of sense. Nevertheless, if I can make it work, I will. 

As the project proceeds I'll post the gory details to all here on my blog. Enjoy!


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